Company Number: 12494310

Analysis Date: 2025-07-20 16:16 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net assets and shareholders’ funds in the latest financial year but continues to display net current liabilities, indicating ongoing short-term liquidity pressures.

2. Key Concerns:

• Persistent Negative Net Current Assets: The company had net current liabilities of £5,773 as of 31 March 2024, though improved from prior years, suggesting potential cash flow difficulties in meeting short-term obligations.
• Small Share Capital and Limited Equity Buffer: Share capital stands at only £1.00 with net assets of £935, which provides minimal capital buffer against losses or unexpected expenses.
• Reliance on a Single Director and Owner: Mr. Adam Parrish holds 75-100% ownership and voting rights and is the sole director, raising governance and continuity risks.

3. Positive Indicators:

• Recent Improvement in Financial Position: Net assets increased from negative £3,704 in 2023 to positive £935 in 2024, showing signs of operational recovery or better financial management.
• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Micro Entity Status: Limits reporting complexity and overheads, which suits a small-scale building services business with only one employee.

4. Due Diligence Notes:

• Investigate Cash Flow Trends: Review detailed cash flow statements and payment terms with creditors and debtors to assess liquidity risk beyond balance sheet snapshots.
• Assess Contractual Stability: Examine the client base and contract pipeline for sustainability in the building completion and finishing sector (SIC 43390).
• Confirm Director and Ownership Integrity: Verify that Mr. Parrish has no adverse records or conflicts that could impact the company’s operational stability.